Europe’s software industry brings a total value-added GDP of €910 billion to the EU’s economy, whether direct, indirect, or induced, according to a report from BSA, The Software Alliance.
The report – conducted by The Economic Intelligence Unit (EIU) – lays out the case for further stimulating software development in Europe as “a catalyst for the EU economy”. The industry employs 11.6 million people and software companies invest more in R&D than other business sectors.
The authors of the report offer up a number of case studies around Europe in sectors like healthcare, agriculture, city management, aviation, energy, and cybersecurity. Often we see older multinationals working with newer companies as well as traditional industries to aid their digitalisation.
In one case study, Airbus is working with Autodesk and its data analytics solutions to reduce unnecessary weight on aircraft and improve fuel efficiency. Finnish elevator and escalator manufacturer KONE is using IBM technology to install sensors on equipment and manage footfall. In Italy, winemakers are using software to monitor fermentation processes.
As we generate more data, and especially with the spread of the internet of things, Europe should be well-poised to take advantage and grow its economy directly and indirectly through software companies, said BSA.
The report calls for smarter regulations that foster Europe’s software sector.
“It is important to devise legislation that is ready for the future to avoid stifling innovation or delaying the uptake of new technologies,” it said. “Countries choosing policies that encourage technological developments and support a digital economy boost their competitiveness and guarantee their role as hubs in the globalised economy.”
Featured image: JOSBORNE_ / Pixabay